FAQ 24 May 2018 - customs.gov.my

1 FAQ 24 May 2018 1 FREQUENTLY ASKED QUESTIONS (FAQ) TRANSITIONAL 6% - 0% Without prejudice. Note: The FAQ dated 22 May 2018 is cancelled. 1. STATUS OF GST Q : What does the MOF statement dated 16 May 2018 relate to imposition of GST at 0% and its impact on GST / What happens to GST? A : All supplies of goods and services which are now subject to GST at standard-rated 6% becomes standard-rated 0% effective on 01 june 2018 . Importation of goods is also subject to GST at standard-rated 0%. Q : Is such MOF's statement applicable to an exempt supply? A : An exempt supply goods or services is remain exempt.

2 It does not change to standard-rated 0%. Q : Do I need to wait for a letter issued by JKDM to change the rate to standard-rated 0%? A : No, please impose GST at standard-rated 0%. 2. REGISTRATION Q : Do I need to apply to cancel my registration? A : No, cancellation is not required and you remain registered until further notice. Q : I have applied to register for GST but have yet to receive any approval, what should I do? A : JKDM will continue to process the application. Q : I registered late and have been penalised with late registration penalties.

3 Can the penalty be remitted? A : Remission of penalties is under the discretionary power of the Director General. You are required to apply for the remission. Q : I would like to apply for voluntary registration under Section 24 of the GSTA 2014. Do I have to apply? A : No, you do not have to apply for voluntary registration. 3. DEREGISTRATION Q : I have ceased to be a registered person. What is the GST treatment on the business assets? A : You are required to account for GST at standard rate 0%. FAQ 24 May 2018 2 4. TAX INVOICE Q : Do you need to make amendments to the tax invoice to standard rate 0%?

4 A : Yes, tax invoices need to be issued and the standard rate of 6% is changed to standard rate 0%. Q : I made a supply after 01 june 2018 and charged GST at standard rated of 6%. Tax invoice was issued to the buyer. This means I HAVE FULLY charged GST. Do I have to account for tax at standard rate of 6%? A : 1. Yes. If a credit note CANNOT be issued to the buyer, GST at standard rate of 6% should be accounted for. 2. If a credit note can be issued and the company has accounted for the GST, the company may make adjustments via GST-03. Q : I have sold goods and have issued a tax invoice on 01 May 2018 .

5 The item was returned by the buyer on 30 june 2018 . Should credit note be issued at a standard rate of 6% or a standard rate of 0%? A : Credit note should be issued at standard rate of 6% because it relates to a tax invoice that was issued on 01 May 2018 . Q : I have sent my goods to the buyer on 25 May 2018 . What is the GST treatment if the tax invoice is issued on 01 june 2018 ? A : GST should be charged at standard rate of 6%. Q : I have perform my services to the receipient on 25 May 2018 . What is the GST treatment if the tax invoice is issued on 01 june 2018 ?

6 A : GST should be charged at standard rate of 6%. Q : The goods was supplied on 15 june 2018 . Tax invoice has been issued before 01 june 2018 . However, payment was made after 01 june 2018 . What is the GST treatment? A : GST standard rate of 0%. Q : The services was performed on 15 june 2018 . Tax invoice has been issued before 01 june 2018 . However, payment was made after 01 june 2018 . What is the GST treatment? A : GST standard rate of 0%. Q : Tax invoice was issued on 15 june 2018 in respect of utility services granted from 15 May 2018 to 14 june 2018 . What is the GST treatment on this supply?

7 A : GST should be charged at 6% up to 31 May 2018 . From 01 june 2018 , GST should be charged at standard rate of 0%. Utility companies should make adjustments in subsequent bills. Q : A company supplied goods / services before 01 june 2018 . Tax invoice will be issued within 21 days from the date of delivery of the goods / services being performed. What is the GST treatment and tax code that need to be used for such supply? A : GST should be charged at standard rate of 6% and the tax code to be used is SR (6%). FAQ 24 May 2018 3 Q : The company has supplied goods / services before 01 june 2018 and full payment has been received.

8 The tax invoice will be issued after 01 june 2018 . What is the GST treatment on such supply? A : GST should be charged at standard rate 6%. Q : What is the GST rate on the self-billed invoice? A : The GST is standard rate of 0% in self-billed invoice. 5. INPUT TAX CREDIT Q : If the rate of tax for taxable supply fixed at standard rate of 0%, can I still claim input tax? A : Yes, the input tax claims are allowed in compliance with Section 39 and Regulation 38 of, GST Regulations 2014. Q : Does a company making mixed supply need to continue apportioning on the input tax claimed?

9 A : Yes, input tax needs to be apportioned because the standard rate of 0% is a taxable supply. Q : Referring to question , do I need to make annual adjustments? A : Yes. 6. RETURN Q : Do I need to submit GST-03 return? A : Yes. Registered person are still required to submit GST-03 until further notice. Q : I was charged a compound for late submission of return under Section 41 (6) of the GSTA 2014. Can the compound be remitted? A : No. The power to impose compound is at the discretion of Public Prosecutor. Q : I was charged a penalty for a late payment under Section 41 (7) of the GSTA 2014.

10 Can the penalty be remitted? A : It is the discretionary power of the Director General under Section 62 (2) of the GSTA 2014. The application of the remission shall be made. Q : In which column in the GST-03 return do I need to declare for a supply that has changed to a standard rate of 0%? A : In column 5 (a) of GST-03. Q : Where do I declare in GST-03 a supply that was formerly zero-rated? A : Declare in column 5 (a) of GST-03 because GST (Zero-Rated) Order 2014 is repealed. Q : My taxable period is 01 April 2018 to 30 june 2018 . How should I declare the GST-03 return? A : You must make a declaration of 6% standard rated sales before 01 june 2018 and 0% standard rated sales from 01 june 2018 in column 5 (a) of GST-03.